Shell buys rights to 500-MW/1,000-MWh battery project in NSW

Shell Plc (LON:SHEL) has bought the development rights to a 500-MW/1,000-MWh battery energy storage system (BESS) project to be sited within the former Wallerawang thermal coal power complex in New South Wales, Australia.

The Wallerawang 9 Battery, as it is called, will be built, owned and operated by Shell Energy Australia, the oil giant said on Tuesday without providing details about the value of the purchase. The vendor is Australian real estate investor Greenspot, which separately said it will be partnering with Shell during the installation process.

While development approvals for the projects are already in place, a final investment decision on the project is yet to be taken, Shell said.

The BESS is planned to be built at the site of the decommissioned power station near Lithgow, which is currently being repurposed by Greenspot. The latter will lease 20 hectares (49.4 acres) of land for the battery. Wallerawang 9 will connect to an existing substation located in proximity.

“Battery energy storage has a vital role to play in the energy transition by supporting the renewable generation and contributing to improved reliability for the grid and consumers,” said Shell Energy’s CEO Greg Joiner.

The acquisition is aligned with Shell's goal to build a low-carbon integrated power business in Australia.

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